Broad-based improvement in operating performance; palm oil business lags

Company
10 May 2024
5 Min read 
  • Godrej Agrovet reported strong operating performance in 4QFY24, driven by improved profitability in crop protection and a turnaround in the dairy business.
  •  The animal feed business also contributed significantly, with EBIT rising 53% YoY.
  •  However, the palm oil business recorded a weaker performance, with EBIT declining ~50% YoY.
  •  The company expects growth in animal feed to be led by fish feed and cattle feed segments in FY25.
  •  The company is focusing on value-added products in the dairy business, which is expected to further increase by ~400-500bp in FY25.
  •  Factoring in 4QFY24 performance, the EBITDA estimates for FY25/FY26 have been raised by 7%/10%.
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